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MANA 298
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UNIVERSITY OF MAURITIUS FACULTY OF LAW AND MANAGEMENT YEARLY/SECOND SEMESTER DATE EXAMINATIONS MONDAY BSc (HONS) MANAGEMENT LEVEL I 15 MAY 2006 BSc (HONS) MANAGEMENT WITH INFORMATION SYSTEMS LEVEL I BSc (HONS) MANAGEMENT WITH FINANCE LEVEL I BSc (HONS) BUSINESS STUDIES LEVEL I BA (HONS) LAW AND MANAGEMENT LEVEL I SERIES MODULE TIME MAY 2006 MARKETING 13.30 – 15.30 HRS FUNDAMENTALS [MGT 1203(1)] INSTRUCTIONS TO CANDIDATES TIME ALLOWED: TWO (2) HOURS NO. OF QUESTIONS SET: FIVE (5) NO. OF QUESTIONS TO BE ATTEMPTED: THREE (3) SECTION A: CASE STUDY – COMPULSORY (30 MARKS) SECTION B: ANSWER ANY TWO (2) QUESTIONS. EACH QUESTION CARRIES 20 MARKS MARKETING FUNDAMENTALS [MGT 1203(1)] SECTION A (Compulsory) CASE STUDY PHILLIPS ELECTRONICS NV Parul Shah, vice president for Phillip s Electronics NV, a Dutch consumer electronics giant, reclined somberly in her chair as she gazed through the window at the rainy, gloomy weather. The atmosphere of her company’s state of affairs was about as dismal. He r secretary had just left with the draft of the company’s year-end financial statements. Sales were at an all-time low, and debt was rising. Their once-pro mising CD-interactive product was history, not to be repeated. Phillips sold a mere 400,000 CD-Is in the United States in the past five years, compared to the 1 million-plus Sony Corp. game machines sold in the United States. As she sipped a calming herbal tea, she mused on the past year and wondered what could have gone wrong … how could a digital-age, high-tech product fail today’s computer oriented market? It all began five years ago when Phillips introduced the compact disk- interactive player, aka the “imagination machine,” because of its remarkable versatility. A newcomer in the home entertainment and information market, this product was a game player, teachi ng tool, and music system rolled into one. Operated by a hand-held remote, the system plays easy-to-load standard music compact disks, photo compact disk s, and interactive games, plus it offers an optional add-on video cartridge and access to the Internet. Phillips had high hopes for setting a new digital-age standard in the United States with a machine providing a ll the wizardry consumers wanted, but failed to transform CD-I into a global media product. Matsushita Electric Industrial Co., one of the world’s biggest consumer electronics manufacturers, also agreed to support the CD-I venture. Parul turned her thoughts toward the m arketing campaign. In the effort to boost sagging sales, Phillips set up an infomercial, “The Great Wall to explain the CD-I. In the infomercia
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